Problem

Alexander ProductsAlexander Products manufactures dental equipment and uses a standard cos...

Alexander Products

Alexander Products manufactures dental equipment and uses a standard cost system. A new product (HV65) that is being introduced requires a particular type of stainless steel. Alexander purchased a quantity of this stainless steel (in meters). The following data summarize the operations regarding the purchase and use of this new stainless steel.

Actual price

$6.20 per meter

Actual number of meters used

8,500 meters

Price variance

$2,000 U

Raw material variance

$3,000 U

Ending raw material inventory

$9,000

Standard quantity given the number of HV65 produced

8,000 meters

Amount of stainless steel in work in process inventory

$48,000

Required:

Calculate the number of meters of stainless steel purchased and the standard price per meter of the stainless steel Alexander used in its standard cost system.

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Solutions For Problems in Chapter 12